Direct Air files for Chapter 11 bankruptcy protection

Travel

Myrtle Beach, S.C-based Direct Air has filed for Chapter 11 bankruptcy protection citing financial difficulties just days after the public air charter abruptly cancelled flights through mid-May.

Without notice Direct Air canceled some flights late Monday, including a flight to Palm Beach International Airport from Niagara Falls, N.Y. leaving many passengers stranded.

On Tuesday it announced it would stop flying through May 15, citing “operational issues,” and on Thursday filed for Chapter 11 protection in the U.S. Bankruptcy Court, Massachusetts Division.

In a statement Friday, Direct Air officials said the carrier had been in a “severe operating loss position” in spite of an injection of working capital from new majority owners in recent months.

Last September aWashington, D.C.-based investor group purchased a majority interest in Direct Air.

The charter company serves 17 cities across the United States including South Florida’s West Palm Beach.

Direct Air’s previous operating management, which was left in place after the ownership change, was replaced earlier this week.

On Friday the charter company said it hopes to emerge from bankruptcy soon and is “deeply apologetic for the inconvenience caused to its customers, the communities it serves, and its dedicated employees serving.”

It’s unclear whether Direct Air will resume flights after May 15 as previously indicated.